Chapter 8- Manage the product
introduction stage
-1st stage of PLC -slow growth of a new product. -customers first purchases the good or service. -this stage can last quite long -no profit because companies are recovering losses. - marketers focus on informing ppl o promised benefits
steps to manage a product
1. develop product objectives 2. design product strategies 3. make tactical product decisions-> branding, packaging
types of relationships a person might have with a brand
1.self concept attachment: establishes user identity 2.nostalgic attachment: past self 3i.nterdependence: apart of users daily routine 4.love: warmth and passion
growth stage
2nd stage of PLC -consumers accept the product and sales rapidly increase. -goal for marketers is to increase brand loyalty and gain market share. -profits increase and peak
maturity stage
3rd stage of PLC longest stage. -sales peak and profit margins narrow. -competition is huge and market share starts to decrease - marketers remind consumers about their product (did you brush your teeth today)
brand extensions
A new product sold with the same brand name as a strong existing brand ex. clorox wet wipes
ISO 9000
A set of international standards on quality management and quality assurance, critical to international business.
product line
a firms total product offering desinged to satisify a single need or desire of target customer ex. p&g line: tide is for tough stains, dawn is for soft clothes
total quality management
a management philosophy that focuses on satisfying customers through empowering employees to be an active part of continuous quality improvement. basically: everyone working at a company serves the customers, even employees who dont interact with consumers
brand manager
a manager who has direct responsibility for one brand or one product line; called a product manager in some firms
brand
a name term symbol of a product that identifies one firms products and sets apart from the competition.
ISO 14000
a series of international standards for managing, monitoring, and minimizing an organization's harmful effects on the environment
upward line stretch
adding new items to the product line- higher priced entrants that claim better quality or have more features. ex: when car manufacturers have multiple models that range in quality adding higher quality items
two way stretch
adds products at both the upper and lower ends. ex hotels with more exclusive rooms and average rooms
private label brands
aka store brands. brands that a certain retailer or distributor owns and sells. ex. canadian tire sells store brand moto master lawn mowers. ex. safeway and presidents choices items
family brands
aka umbrella brand. A firm's own corporate name used to brand its product lines and products. ex. microsoft is the umbrella for individually branded products like windows 10, office and xbox
cobranding
an agreement between 2 brands to work together to makret a new product. ex. dairy queen and their oreo mcflurry mcdonalds in wal mart starbucks in book stores
downward line stretch
augments a line when it adds items at the lower end. here, the firm muust make sure to not blur the images of the higher priced items. ex: rolex wouldnt want to risk its image with a cheaper watch to compete with timex or swatch adding items to lower end
national brands
brands that product manfacturers own.
product line length
determined by the number of separate items within the same category ex. for P&G, all items for fabric and home care tide, downy, febreeze, ivory, cheer, mr clean, swiffer
attributes of product quality
durable reliable precise versatile
objectives for individual products
ex. mini cooper and bmw staying separate goals might be to focus on branding new life and brand personality
product life cycle
explains how products go through 4 stages from birth to death: introduction growth maturity decline
limited product line
fewer product variations, they can improve the firms image if consumers perceive it as a specialist with clear specific position in the market. ex: rolls royce- expensive hand crafted cars built specifically for each customer
decline stage
final stage in PLC -sales decrease and customer needs change. -reason may be forced by new technology. - there may be many competitors but none have a distinct advantage. -major decision on whether to keep the product on shelves or not.
branding strategies
individual brand family brand national and store brand generic brands licensing cobranding
full product line
large number of variations in a product line that targets many customer segments to boost sales potential
brand storytelling
marketers seek to engage consumers with compelling stories about brands
six sigma
process where firms work to limit product defects to 3.4 per million or fewer Performance improvement model to create nearly defect free processes. Stat term to show 99.9997% defect-free yield for a process
generic brands
products are not branded and sold at the lwest price possible. ex. superstore selling "green beans"
brand meaning
the beliefs and associations that a consumer has about the brand. ex: gender- old spice and masculinity social class: mercades and the old, elite place: tim hortons and canada brand identification: nike and the swoosh logo
cannibalization
the loss of sales of an existing brand when a new item in a product line or product family is introduced.
product mix width
the number of different product lines the firm produces P&G Example: fabric and home care, beauty care, healthy care, snacks and beverages. all of these are in different categories
product quality
the overall ability of the product to satisfy the customers expectations. quality is tied to how customers THINK a product will perform, not necessarily the technological level of performance
product management
the systematic and usually team-based approach to coordinating all aspects of a product's marketing initiative including all elements of the marketing mix
product mix
the total self of all products a firm offers for sale. ex: P&G offers shaving products, toothbrushes, batteries etc
brand equity
the value of a brand to an organization. means that a brand enjoys customer loyalty because people believe its superior to the competition ex: 95% of people use steinway pianos
brand name
this is the most used and recognized form of branding. should fit 4 ways. 1. fit the target 2 fit the product benefits 3. fit the customer culture 4. fit legal requirements
individual brands
to use a separate unique brand for each product item. do a good job of communicating clearly what the consumer can expect from the company. ex. P&G brands each of its household items separately
licensing
when 1 firm sells another firm the rights to use a brand name for a specific purpose in a specific period of time
cons of too many brands
when this happens consumers cant differentiate brands because of poor positioning. ex GM and all their brands?